Darden Restaurants (DRI) 19 Dec 242025 Q2 Earnings call transcript

Greetings, and welcome to the Darden Restaurants, Inc. Q2 Fiscal Year 2025 Earnings Conference Call and Webcast. [Operator Instructions] As a reminder, this conference is being recorded. It's now my pleasure to turn the call over to your host, Phil MacLean, Vice President, Finance and Investor Relations. Please go ahead, Phil.

Kevin. you, Thank and everyone, for on participating Good thank call. today's morning, you

President Rick and are me and Cardenas, Joining Darden's CEO; CFO. Raj Vennam,

and As XXXX. that These could this during are subject as Private comments and include statements Litigation reminder, uncertainties risks the results differ Securities of materially which Those statements the defined call and in described are press to from release, projections. Act with actual Reform cause to the distributed was forward-looking its in a Exchange Commission. morning this risks Securities our expectations will filings company's made and

We Relations broadcasting presentation section which call, Investor website are our simultaneously darden.com. at during posted this of the a in is

included in presentation. and presentation the certain discussion and include are reconciliations measurements, Today's measurements non-GAAP of these

plan third call. Looking March followed to on Thursday, market XXXX before conference by a release earnings fiscal XX, quarter the opens, ahead, we

Intelligence, Black During benchmark excluding today's to refer call, the results all to dining casual industry Box references Darden.

quarter, grew the financial quarter morning, an will our some our and on Rick remarks industry This financial to During details XXXX on brief outlook. provide same-restaurant fiscal will X.X%. update and second by industry and guest decreased sales results fiscal share counts same-restaurant our X% Raj

I Now the to over Rick. turn will call

everyone. sales Steakhouse, quarter. X Kitchen, House our in and all Scratch Phil, of on food, and our quarter for you, brands, and philosophy anchored atmosphere. same-restaurant our positive LongHorn were focused was sales had met generated that back-to-basics and Yard positive expectations. intensely the that all largest operating I our pleased Thank Olive Garden, service our Same-restaurant Cheddar's good We morning, segments strong a remained of at X X brands

more highest rate even drove being the of to starting price team's Ending our NEPB positive point price great During a compelling Pasta protein Never $XX.XX, received ongoing the combined compared at Garden higher was possible, Bowl guests. sales an extended in and well marking an once making focus Olive refill with the it never to consecutive that ever gap industry. year year. by growing again earning quarter, value the with on execution the last third of at add-ons for basics, evidenced as the point

team. In launched approximately in on of quarter. restaurants, pilot very initiatives it begin The it not out the XXX track Garden Direct traffic, in October, value They execution. the gone focus the is end Garden positioned technology to to of the Operations with the its IT as the to operational Darden completion seekers. Uber Excellence order Olive appealing Olive pilot the rest thanks several Garden Garden working been to has team pilot team integration rolling holidays well, Olive operators in on promoting to that brand core Olive third and continue is and well restaurants. to to a the on the well yet potential leverage to news and has the is are as system drive after by the guests

launched dining, but that The operational and stake which most grilling requires advertising Starting quality Garden X additional point. ago, quality extremely fan at to and highest only news encouraging. fans that entrees Gorgon these of Stuff from the requested value fan and stakes These in also State passionate compelling about LongHorn by not the LongHorn an the in these product. strong X weeks expectations, Olive feature driving execution. driven favorites, favorites Marcela. guest is perfectly, Garden's bring menu serving the and each is is initial were team January, great guest initiatives the continues of Chicken highest updated return to dishes asked featuring exceed guests of will back having price response casual One an return Zola the Olive

meet country LongHorn first Steak suppliers culture. their the validates Cutter During the members year After each the regularly their The to Grill receiving the the consistently supplier retrains from LongHorn grilled the the across to Masters their LongHorn with perfection. temperature. more their set expertise with correctly their And team steak is for business the managers Steak how one receiving grow summit their adherence ensures their custom meet right stringent summit why and stakes quality review partners of and ended Award the specifications the positioned Golden partners them to that all brand's verify and their in season best hosted to event LongHorn LongHorn standards. quarter, expectations. team steaks is specifications to and each better on to immerse to that left That's aligned to

our positioned way brand the well and speed quarter. buys create news team with momentum October on House limited opportunity during purchasing this build which life Cheddar's helped to further is during is distinctive culinary focus their high efficiency quarter. with appeal positive a One with a range capitalizing an trend-forward momentum fest, sliders The the approachable The Other drive they to the and quarter. of House how cost advantage Yard competitive store offerings offers. power One [indiscernible] during sales to price. of the on team This The House by time bring at continues real pay correctly to resulted were within a and provide that great Cheddar's food built broad the to drove in third has lower is off segment. new during of leverages this to all-time for steaks Yard of items. served comps and through wow Yard example performance featured achieve Darden's food

proud team T-bone followed of I'm $XX.XX price. by entrees During the building. menu. include and for the also cussance sides for honey each momentum their And their the quarter, $XX.XX. Cheddar's of was to X LTOs returned Their Texas bone-in which and X butter that ribeye for these is

annual first among retention their casual Technomic's recent exceeding best-ever category in again their for most achieved ranked Cheddar's outperformed they dining goal. already casual score level dining survey, value brands the and affordability. quarter, once Also, the During their

Darden Now the the integration. update including and Chris Corman, our brief team, and directed X objectives: President, of on team integration a will experience to John generation in little possible. we being same leadership during The longer the as on Hislop; about are integration and is are be successfully Chuy's. and operations let Chuy's leader, for preserving me as system. place. key with closed maintaining transaction has led begun a is and culture, our focused We a onto Steve time Chris the the next the that line likely unique for than this They Ruth point-of-sale disruptions rolling guest successfully out experience the the migrating Chuy's Chuy's provide employee by the few just platform one Ruth's process quarter, the begin successfully because The

system is X easier our enhance key are integrated years to has continued is ourselves. it's number a jobs that and of deliver an proprietary This help features and It's ensure designed advantage and data the our not insights. applications that managers' also enhance with great off-the-shelf key all to compliance. we extensive our of XX and and restaurant product ago operations make of supports different currently to maintain labor Rather, for more This built brands data nerve center than competitive a first system

of some been team types the provide working operate time modern the different IT an implement to on interface has deliver real-time rewrite completely in improved offer updated application more Our to technology near order ability hardware analytics. modernize for and and to user architecture, and

disruptions team team drive to respond for to of All training requests IT speed as and online enter members competitive data other strengthen Chuy's. when clicks this from enable new The out faster scale and will number advantages tasks, it for learning will reduce further help of we enhancements well our our we reducing bring it by system significant rolling our and time as at insights. capture orders of extensive to minimize required

Helene meaningful we During also Milton. experienced impacts quarter, from hurricanes, and second the

the ensuring the sustained. reopen been and operations restaurant, Only were severe in an force storms Our and due to to job able to task our the outstanding restaurants has quickly. Carolina North teams prepared reopen weather our Asheville, damages for unable did Cheddar's one

Hurricane path fiscal to while members across impact expect guests. and Hurricane this destruction a next our We multiple was of states, Milton across left Helene's felt year. restaurant Florida, team reopen each affecting

of company to families that cares, year, the Darden everyone delight Cross ways one like respond provides to The program. disasters grant process. program prepare during disaster for enables annual a of recovery giving to others help communities Red and need. partner Helene American help a Each we That's As Milton Cross. Red $XXX,XXX the responding the of and the to their nourish and is Foundation by proud the serve a times is why Darden in we

well. culture, count of Nothing as the represents quite can members team Our on strength dones. like this Darden our

program across employee enables the signature that giving at members coworkers restaurants unexpected of center when fellow support restaurant to Our the their support and our team happens. family

X,XXX affected Dimes our more who members. were and grateful we $X.X those team in are members the to than are areas all We Darden quickly to that help impacted hit. of safe, moved totaling million team provided hardest grants

back-to-basics as term members. lasting in holiday behalf on you environment. is of to holiday midst the and of leadership team our philosophy. I operating strategy team and are our leadership the committed the reflect guests our our to teams to happy am hope of the I Each and of the want quarter, effectively memories. for nourish I time quarter, the XXX,XXX to busiest Board the and the of I see throughout and believe our restaurants. the our staying delight wish regardless one and restaurants now second your teams On As a and our our thank season on ability Directors, create way our to in and of you of power performed continue year I long we families of brand's the they compete proud brand in our focused

Now I'll it turn Raj. to over

and good Thank everyone. you, Rick, morning,

in The our X quarter caused the brands the quarter. were this benefit sales that a the positive and third results our year Thanksgiving to shift Fine for headwind casual brands second brands. expectations with for with line sales in the same-restaurant dining Dining earnings quarter our Second largest

benefit for holiday even at Thanksgiving adjusting restaurant still of same were sales brands, positive. X the However, largest when shift the our

than shift the of XX outperformed sales X% driven year, XX total $X.X was of we and Melton. offset better XXX points a hurricanes million benchmarks operations quarter, this from year. same-restaurant contributed guest of Adjusted acquisition but industry again by last the the new $XXX We the restaurant restaurants. and basis and We higher sales, to sales million negative Helene $X.XX paying $XXX impact holiday second Thanksgiving continuing quarter to restaurants repurchases. billion points on points XX% $XXX for industry $XXX were basis diluted industry were and higher million the EBITDA the share the approximately Same from XX basis the basis X.X%, exceeded XXX by Chuy's share returned last per than partially dividends earnings sales by also and net of The quarter. adjusted our in points. XX of same-restaurant same in XXX generated of Russian counts addition generated shareholders, In million October than net

offsetting productivity as points expectations. inflation looking points points of never-ending from than slightly we to last XX how higher pricing driven possible, X.X%, Restaurant they of was due year. adjusted marketing XX were disciplined more better and expenses our flat. and spending our deflationary while beverage which with was basis by leverage more the basis which our were -- margin shift to pricing. Restaurant well driven XX Thanksgiving analysis our we by the lower in the increased above expenses dollars. lower, labor expenses sales Food compared Marketing leverage weeks at labor basis we Now were total spend were than improvements were remain and commodities media

the way this for related largely our expense, basis deferred we year. XX.X% acquisition year other financing line. G&A mark-to-market needs. quarter. for mark-to-market than level Our expenses basis points unfavorable the points was cash expenses in the last Chuy's were is Interest hedge quarter expense restaurant by and offset compensation XX the XX increase the expense to tax increased caused higher EBITDA points Adjusted XX basis to last driven as higher of XX Due on the unfavorability points than basis

mark-to-market the Our earlier. which effective was tax hedge the on adjusted XX.X%, includes rate impact referenced I favorable

XX% Our rate effective approximately tax been without of impact the would mark-to-market. have

last In year. basis were adjusted total, from our than was earnings sales, which $XXX operations X.X% continuing million, better and points of XX

Olive points. for Garden quarter. X-year quarter. Looking X.X% for by our Total and grown industry period. increased same-restaurant outperforming the basis at basis, the industry sales X.X%, of by Olive same the XXX Last year, the over by sales benchmark benchmark exceeding XXX segments On restaurant X%, Olive second were over same-restaurant sales that sales basis driven has in Garden points Garden a by X% by

year. by XXX where the segment Garden total growth build to points. XXX X.X%, last X.X%. which XX.X%, XX.X% mostly Olive These of Leverage same-restaurant sales sales delivering for profit industry segment driven continues LongHorn, margin, outperforming the the have by on they than basis margin basis QX sales from of growth is from strong points year, had results profit basis strong results At same-restaurant resulted XX strong above last XX.X%, of sales year. last higher increased benchmark points quarter, in

shift negative holiday Fine growth points for dining X.X% year. same-restaurant profit X.X%, busy an decreased third is the same Adjusted impacts, Dining basis The the of Segment Fine of the into restaurant negative from last approximately quarter business was by at quarter quarter. segment our XXX first second were this all Dining better points which driven Thanksgiving The positive of for a fine last the resulted Other acquisition improvement of year at margin year, by was year. basis from decreased XX.X% sales sales. sales impact of same-restaurant day profit than resulted these the hurricanes a to and Dining in last sales as brands with sales our and the the sales Fine segment margin negative than XX.X% combined same-restaurant Total of quarter. lower segment for this sales in and XX approximately increased X.X%. the sequential brands Chuy's

to expectations financial our and our back reflect guidance acquisition XXXX. for outlook of for of updated fiscal to the the year. year-to-date our half Chuy's, Turning the We results

[indiscernible] beginning not of As they fiscal a Ruth's by include reminder, the house and a this steak period were same-restaurant sales not Chris XX-month for the operated year owned for do Darden at the because year.

outlook we from million; Same-restaurant So capital $XXX to million average approximately restaurants, for XX expect This inflation million including of adjusted sales shares approximately X.X%, commodities integration-related the inflation no approximately earnings billion, X% of of XXX change share which annual in growth of an excludes $XX effective $XX.X transaction of of net tax million XX of $XXX $X.XX, XX.X%, rate sales approximately X.X%, our diluted Chuy's. diluted $X.XX year. approximately outstanding results approximately and approximately to total new total now including to approximately spending per of pretax and approximately costs.

rates impact the year, EPS into at of QX, QX half to and in than back holiday be the Thanksgiving expect the fiscal rates the growth given we Looking the growth of sales quarter. third in lower the shift

we going in with in XXX realize million, we million October, restaurants. run approximately approximately expected, we and well, the rate synergies fiscal the acquiring stages, is as but and integration XXXX. Chuy's in of Chuy's $X in Finally, $XX closed expect realized now XXXX deal balance fiscal We're the early the to on

confidence adjusted As to we be we share very mentioned not results. of expenses. and in actions the to per pleased have taking guest anticipate will previously, and transaction [indiscernible] teams to neutral with brand earnings fiscal the the needs transaction address and strong our strategy model. the year, integration-related are for to including our We're our continue deliver We'll business our their strength

it questions. Now up we'll open for

ISI. question Our is Instructions] coming Evercore Palmer [Operator today David from from first

brand. you about to I seeing on consumer Olive you ask a to good what ask wanted have I you're wanted question team with know insights you Garden. I that there. very a

the to superiority to leaders levels that Given of satisfaction the the Garden Olive comparable any are high, equal that fact sort so in the Italian segment. in customer seems be to segment.

of think think to now you industry Just and is do advertising, not better? wondering that, it the related why a gap half. the Is it's right think I -- down on is I advertising to lot sales about pre-COVID, the about to your why gap the ask that spend people not

helpful. be comments on any that So would

One, you of narrower the exceptional it's a gapped things A years, it's the while last gap. than about bit Olive in couple past, been gap think about how been David, to it's it Rick. little if we've over much industry, has Garden. the X an the

go few now. you on if a it back gap we to so And high keep year maybe -- as said ago a call, is we don't the expect the as

significant drive We've -- guest after count our strategy promotions, not gone so some like happened. have profitable growth. also others And same-restaurant to and brought that We sales profitable growth, back. discounting kept

doing showed weeks for some Ending Bowl Pasta our Ending we a power quarter, promotion great We were weeks weeks Never few us. the Pasta this running things. that to those of are Never so and Bowl nothing And added against we

who against Just little doing who longer. been have like are others started promotions starting running -- nothing, they've it a

our we're terms And still that in the that comment amounts are so feel let of kind part. long while you accurate. of doing the gap, think the don't said, smaller, marketing, right the Raj And things term. on I'll in confident we I exactly

on the So spend, very to David, right? really close essentially spending to LongHorn Yes, little, marketing LongHorn it's by used spend X%. driven

probably [ of best. spending think X.X% at today, I X.X%, sales ] they're maybe

really it used biggest the, decrease. but less, Olive not call XX% spending Garden marketing driver in the is than half. it's to of less it, So It's that's XX%, spend. more what

advertising the going the you're comfortable you of advertising that spending believe of scale believe problem, a don't don't these at you So forward? levels -- is

we're could ticked continue this what look in think advertising we say quarter, continue Olive and I we that. wouldn't do going to we we say there -- to Garden to -- ways advertise David, not, Yes, up whether can to I or as about would do, we're at comfortable

we and what we good but half second our about really promotions the what of of in it feel we're So what running we kind have, depends have on year.

But pickup And comment be to on marketing for competitive potentially in we could don't so that in second half. want there a the reasons.

Next KeyBanc Gonzalez Capital question is coming from Eric from Markets.

on Just last that marketing. point about

fan in bring And I then selling the going messaging think point. will to back you're to the and include you menu. mentioned the January, also favorites price

just so bit an next putting it sound pieces in like quarter have together, the uptick a I'm might little does So the advertising. of

you quarters. -- strong quarter us for the one highest Well, a third think quarter really our if is usually. It's about of already volume

much how look not, our on So you without different. advertising up tell or will tick would that commenting marketing just will I

I have, compelling exciting favorites our with fan X another with time. said, news return a that's favor some a point We as limited and coming fan for price

So or our higher if will in look going I different third on lower. won't it's advertising the quarter. be to comment

Okay. on Pasta just And Never Ending then also Bowl.

I those you the compare particularly in talked didn't about that weeks prior think the strong year. performance, against

it just I'm do during once longer last year? once period, how how the played with quarter? of easy kind weeks So last Like curious out it how those the did did promotion the do -- promo

going still start saying I'm to some proud Garden the react on and Olive what's add to the Yes. the those has of work improve how to at Never and done weeks team in that Ending experience guest the of Bowl. Pasta by Dan going to And was am to one I reactions marketplace.

good in launch us. throughout Ending weights, entire what But it we'd We have Bowl by the those kept was weeks. preference pleased X of happened promotion we're throughout kind in We would looks promotion, we against those extra adding so change cetera. our weeks. thing. on last be we then weight X a Never about And for media the X that weeks, wrapping But Pasta et extra a stronger trend knew knew the

preference out refills I had for buy was And we record prepared as record for the no my on items. said for in So up. and preference demand there wear the remarks,

well. the So did promotion

launch prior in especially a Now the be sauce, promotion, be in did the new were on going new sauce the we when expected below we it as weight we was to new that part to but wrapping weights. powerful back as -- isn't promotion. add What of second year during the a the of launch

Pasta Ending could for do at at us So feel up and and with we Never we that did other we future ended we're really what in with Bowl, looking good promotions. where what the

question Salera from Next Jim coming today is from Stephens.

there, given I strength want the bit marketing out engagement of as very casual. you driving of guys low, some in through in trends the think competitors commentary other in has there is that the of LongHorn should maybe continued of dollar and [indiscernible] value. you which more to a very price the marketing drill especially prominent relative have the strong. experiential seen spend And focuses really Can particular, about parse just down to we we've on is progressing how years, but that some points little the kind had other

that's Well, LongHorn's brand is. what

fight experience. they're brand that's point going back or quality not to So promotion price and the about a

by over start of food. I'll saying that So to of improve years COVID improve LongHorn before food, has the quality execution to even the by investments their made the

showed And cook that steaks making And years are dramatically correctly our this exactly to of so things where just ago. it quarter, trained record we've or than sure done those the well masters different over that grill record score was to guests X it. in like our as X guest the that up times stakes

our that plate continue value. space. make We we had anybody notice put And in on the We dollars investments else guess food. -- than more to in

they're so restaurants willing to And do that. come to and our

for are on up X.X% what before. year the a on the comp the percent comp and results? X-plus so year a And quarter, X-plus percent last results, The comp

Guests operations that the highest great getting thing I'll is they're off. value. with and those last at paid in winning. a take investments strong brands know that on quality stakes expertly So have quality then quality deliver are prepared the say And

few the the think right the for going everybody things. And think next outperform doing to way they're but can't on on, -- continue that is And things. to years, we so they're that's comment LongHorn think I we right I working else

LongHorn? to price able Great. you that are mix And break for just out traffic X.X%

was traffic mid-Xs. The Yes.

. X.X little and mix check a or positive like think X.X, they X.X, I X.X something was so about bit. was a X price the had the and

Next is Peter BTIG. from from Saleh coming from question

want Olive partnership switching comp? benefit for Is accounting Eats. guys service forward ask from to from you did the Congrats great kind I customers the the the a quarter. anything, on reflected and how the maybe about self-pickup guidance delivery Uber in anything and if of the to charge Eats are there what, was of delivery Garden Uber there? And your of in going maybe accounting through

Yes. When very part of me small, about accounting with all, let impact fee Peter, The fee sales. right? first you it's -- it. delivery and part service start of the think the as of are considered

you when However, now, it impact XXX right -- have we look at the on restaurants.

than for fully quarter impact. We restaurants. basis had come that it's it the take And throughout have when maybe the less points single through, half those XXX dollars you

-- sales not XX it's will maybe, we of mean the miniscule. what it or not going basis yes, may X, I depends there forward to, very And be. percentage it's be percentage to as delivery -- off-premise be be could huge. points what look So obviously it's but it on

when now, more more expect actually have to share. minimal. be share right we'll it So to we But we information fairly

coming least of just X Any from? Chuy's are about more, Great. understand trying guidance up the there coming on growth, on the at or just And the that's something your inclusion up, it ticked that unit it incremental is picked from? like Is by looks where comments X then where to units.

towards work year build pipeline. X to as we It's inclusion really trying next a And openings continue related fiscal to at to getting trying look we're There's as Chuy's. -- we of the additional to said, Chuy's.

few them, it's is of year-to-year. in, some some -- that's come between Chuy's. but there move so could weeks by And really driven A difference the

Jeffrey from Barclays. coming from Bernstein is question Next

Great. you it like system, guidance. looks the And my just X.X%. the comp question to It 'XX first tightened is for fiscal on

X% to I previously, you were think X%.

Olive related just I'm increased I you why there's compares, that tighten One, around obviously at new be a LongHorn? for got very confidence that to just X it and And with you whether it demonstrates on specific know on a second quarters come. assume less with Olive lot value have just And So Garden, LongHorn, what question easier strong maybe that. volatility. price going least the the would does questions much just potentially remaining, wondering that to LTO Garden directionally X momentum. has you've a such point? is

would maybe those I be X.X%. of brands that assumed So have would above both

interpreting Just that if trying to I'm see correctly.

we're we could let's start same it restaurant the is way X.X. back thinking about basis at a half. the itself. underlying expect of We We're sales guidance Jeff, multiyear with the we're be said, the to incorporating sales on being trends that. increased midpoint a get And we've looking better, to we actions in more say as tightened taking implies the more it in little approximately we it The that and on behind And the yes, be have yes, you confidence bit why and that's we're that closer range, that that that's X we or have to and quarters there. in us. all

we idea. have the So

-- have actualized. those are We

the is a it trying little that consideration quarters, into narrower now we're X full makes bit fact take the and we're when not -- it looking at So you only more calculate year. range as the to

here. to in Garden Olive that assume assumption Got well I think would it. you of there, those obviously, would accelerate from has above for correct within Garden ranges. And running been terms And Olive LongHorn the LongHorn

a for are we're So that there just that's sense interpretation trying to correct appreciating? offsets or not some fully get whether the whether

the mix assumption in of a we have I brands that's the No, think given portfolio. probably fair the

think shift. that point. just noticeable I'm the wondering, just have And impact are whether improved out hurricane back wondering that's might the higher-end the just on and on brands lagging, then getting you I'm there GLP-X this or at when my of a think follow-up particular an you said lot impact they increasing of maybe Fine sequentially you Dining around the kind Understood. brands. any I Thanksgiving leading I'm having comps, questions any impact is

of or Fine Dining Risk year, there's the that right lagging. growing brands. leading brands Chris to last less for to is little large see due regards ours we'll bit is portfolio monitor brands like about different our that's really It some to take Jeff, brands, of having benefit there's We if think brands. multiple fact restaurants. many any price But you GLP-Xs, . the Ruth's had help didn't capital a monitor we just the X% could that we in and turned but the no drugs. lot a higher-end that than In on we having where the restaurants. in have strengthen if recall, we to if lunch categories. actions their take about GLP-X now, third-party to be think we continue actually, the eliminated will and the impact you it's population any that. off in quarter, And that. Chris, delivery That an I a and from the at said, of of in other around a ADBs, of second GLP-X lot

Next from question Sara America. of Bank from coming Senatore is

about I guess, a the broader question, had actually, I environment.

casual You seeing mentioned through casual the Olive a that is large that were in protein all I the Fine dining that things that dining add-on. pricing of Garden, the mean positive. one Dining, you're fine yet, up for polish brands and And guess, example, I then softer. were And bit

that? mid-price which And brands? sort do desire a strongest for little are to the or you So be the portfolio. the but indulgence [indiscernible] in protein you some clear if willing LongHorn extrapolate performance, Capital it think or just seems seeing positive your bit. points, curious like pay grow and to for you specifically, can just the some to you Are having like to of among anything any delta -- trade with mix. of value seems a people at but mentioned I was Again,

on Yes, Sara. environment. the A things of couple

they our of better starting you of to prior feel consumer First bit I'll like in little bit it were quarters. research. than the a give a all, little looks is

consumer And is actually bit the optimism of Our sentiment the that terms -- feeling shows our when improve. external of belief the brands market labor Fine a versus out will seeing more casual But the research Dining we're little then the positive. in restaurants. the by trending in a of there's there optimism brands,

which year, and making that. more to $XX,XXX that above in quarters, In we're yet not contrast as really optimism consumers our a from on increase We're contrast this an is In casual there. the seeing to in much seeing our guests seeing brands. visits of previous dining visits of between growth $XXX,XXX are

fine the $XX,XXX And appears those consumers so who we've like the making to splurging said on it Dining in pull -- thing are for other dining are just in that back. who less the continued than basically past, Fine in have

or of it's more down, Ruth So starting some kind to Grille a at average be down In them better. other Crystal state trade to little be consumer maybe bit Longhorn regards Dining to is trade high. that there and little super the more feel But impacting bit a benefiting frequency LongHorn might from Capital could Fine income isn't players.

necessarily but vet thing the out down. So to be little easiest quarter-to-quarter able trade probably do, isn't to to that there's a

really Yes. That's helpful.

about middle sort the itself it's and where and kind class cash of was -- of now point Just the it Fine more Dining maybe as maybe trading briefly is . indulging at up

were. trading probably back to where It's they

Right.

more the is seems a like just after quick really It acquisition. then Cheddar's. it's off mark getting little hit Comping on slower after But positively. This stride it. follow-up. a maybe the its Got Okay.

one the now So an at brand. could that -- growth inflection expectation that? see point, out we where growth was for I point a think Is faster that of unit much

a think that lot they've we actually improve the Well, to done operation.

their earlier, brand, let ever at done a members know We've and it at their turnovers said Cheddar's. turnover little the I the down that understand bringing also team best brand. brand Wilkerson about ways team with and consumer As of testing have levels having on his the can to amazing helps and know John the execute bit some been

end say it imply new significant when about fairly And would that's doing That you that takes unit and a that. think we're and while build improvement. I And said, in that that we pipeline of to something framework would for another lower to new prototype soon. inflection use so that expect for well our change. I that high Cheddar's can the growth, would because restaurant little of part opening we word we've to so one a building that want opened cost be get don't point, pipeline. us, will start very one towards growth unit up

word, little right do. is what So the But growth that it. to a March restaurants maybe not but these more better which we call, about is we we'll in unit be point to say way talk the bit open normally continue might inflection yes, a confidence can

question TD from Charles from Andrew next Your is coming Cowen.

set can acquisition? year Raj, help Chuy's EPS the just the level around G&A, just interest you guidance, within the line items reiterated the expectations for following for and spend depreciation

$XXX G&A, I previously approximately million. Andrew, think we had guided

be to it's $XXX really, be going million. to close going to Chuy's we're with think I

incentive but is of depending $XXX there an some with a million quarter going be roughly. to that the it Obviously, think back expense I expense as what then call interest number use. good range. happens on and our mark-to-market probably, it, a $XX comp, And So in for that's movement half was interest think to million from

year-over-year. And percent trending. been where be then an DNA, to think of similar a I fairly as sales, There's shouldn't increase we've

incremental inflation probably that's how So think years. But it. the higher, the about last on points half, I really in XX basis just the our CapEx, think XX, back really you driven over by CapEx should the several

helpful. beef, beyond the And covered love go of rather rather that like covered more XX% of mean be outlook what's to you vendors low coverage. on more be about That's the I this inflation on, then kind just prohibitive single-digit like good with to to is you'd more conversations to having what there you're the on just be than us lead you'd spot something there. and more seems see would covered but to market covered. I and cost know more outlook, Okay. Talk it this?

Yes.

team done saying our being job chain start beef, supply market. think better I an at I'll has really than by amazing

and throughout happened strategy at at also they look in but we've able of year, deployed been to right contracting, you the looking have times, selectively spot what terms the the at that If having market look at us, shows results. been in the you suppliers that's all right, very when delivering been up strong the and in P&L, has knowledge for -- our that results talking their helpful to the

all the as and year-over-year, actively currently, So know, beef are some as promoting just are up cuts beef these prices rebus. driven of prime significantly you retailers

December. the prices up November, . So in are

-- expects for a get will that early us our some into XXXX, we little bit there January, seasonal cover dip -- as team the think to opportunities I will we go more. However, calendar be

to our get terms strategy too of much in into know but we don't just So that I I that confidence is details, in team the want have how the very high The for to due reluctant get asking we front concerns have. have been they've vendor's out the point the to they from been code supply the is that a perspective, coverage. packers last pursuing

of So and that's being we demanded the part are -- are prices premiums the what reason like. the that are not

have why not much. as that's we covered So

from coming Andrew Capital is BMO question from Markets. Next Strelzik

wanted walk I and drivers back progression maybe how for could the and perhaps total of half inflation about of you're some through year. XXXX through talk you that us to the about margin of if the thinking

Yes, Andrew.

inflation, total a be from we're approximately said So to think X.X%. we going I

you So think over was half about if just the first X%.

to over X%. somewhere all Commodities was in That's the in costs was So labor other in food but half, first how X% get high the the was fairly that the we then neutral. in inflation flat a was little first and half. Xs X-ish, basically

as half, actually driven QX. the be in Part be back it is at back little beef half. to highest would look by what turning food to beverage As of the inflationary up seafood the chicken bit. QX and a expecting QX well. been expect and and we is as that probably we're we steps have

at deflationary if was was the deflationary. in pretty basically was slightly the for in half, look flat seafood first And then first half. So us you chicken beef

commodities single So the we turning X-ish half, inflation back albeit those around would in X of that back low step categories up. why part be we is the to half reason inflationary the have digits, south expect it's percent change. We Then high maybe be that would And QX and probably north X% be bit of from a labor, others then of all not would that. range. a little that in with probably QX, Xs. on

sales how then had pay the relative And to on pasta I for mix that and bit Garden's just same-store the never expectations dig in it wanted it. that, relates impact into add-on Got extra the the opted to deeper of promotion, Olive customers little that ending to specifically growth performs to quarter. as a protein that

buy Yes, Andrew, consumers up. we as I mentioned, buying had record that

so that consumer more expectations. our performed for gives was record above value, more a refills, think, abundance. the which we was positive and And had It I us. The above our even thing expectations, refills,

buy-up at positive wasn't on And but impact did the so the we tremendous, same-store have sales Garden. mix Olive

you many that the getting don't it. part been people to sales, But that have So up. buy-up would of impact of without that that how -- much could bought I cost caused same-restaurant get know of into kind detail how

going detail. of So we're not to that level . get into

from coming Next Stanley. is Brian Morgan question from Harbor

And more to the in guess, you're you promote quarter? I where you've out approach it on you rolled you that? some would going yet, fourth comment. fairly that to of kind was Just How promote start then is do into in it actively but you the to leaning Uber. the material I know say didn't extent it so of at expectation plan to kind the stores far, of

as but has Yes, us. it mentioned, yet. aren't Brian, I the gone we well for pilot Uber, very promoting

any assuming incremental. of not we're are these sales So

to to the the delivery, the or takeout to want get -- our in order. website or delivery a not. ask pay will item to So pilot, you in you if order the restaurant is go it the And to you try have if

only -- on the XXX people that's X.X% know somewhere fee. the of about on delivery sales -- So the it. about without not way including averaging across We're delivery restaurants

So it's not tremendous be to this going quarter. to a for comps impact

results, It it's positive it's incremental. some we -- have seen Again, we not -- though. said does don't we think

is X% and to about week for volume increasing accounts it our of to-go week. So business order

before. the size with was our the a The ordering the a no orders size. average actually catering a again real And little requires is So prior surprise pleasant that's day of is pickup bigger order And bit have existing average XX% there. us. item order for the delivery to catering X:XX p.m. That than about marketing. surprise that on of

they extra itself. catering maybe they guests closer Garden out if want order figuring from don't So are when they that these can service to them, want items get Olive they the

had focusing tell and it's to marketing, sure the it not the we're on have now, I'm been and out it end complete to we timing it by will the that as quarter. in to restaurants to end likely marketing, the it that the sure rest rollout, going that they you third said, of assuming I works, the to we're the I of said, the intend that the system rest rolling run of come you And time aren't by third -- that of right know seamless very delivery. though incremental, terms going operators the to most the to will the So be as complete we're how Garden. make of Olive we quarter, After of online, the guests have as it. get even locations done make can those And learn then restaurants pilot

offer to new I can't tell tell plan I those marketing dollars the delivery. of it's the be working QX. and But And then rollout with going and our . in QX. Uber, on marketing can't good as partnership it's Garden do thing to this dollars available marketing some this after is on the if part is, you team we are been -- marketing deploy in with plans you Olive more

Okay. helpful. Yes, that's

comments kind or just of quoted you Just the LongHorn. on for plans your to pricing it second the any think half as Garden you change cite well. some of what for Is the Olive pricing expect Could what I you'd for provided still year. was you rest previously there? And

Yes, pricing Garden X%. Olive south of Brian. was also

were or X.X%. system, I like Garden X%. think they just the X.X% under Across also was

what contributing mix Garden was count contribution we're sales. see as other back which a was points positive, expect high from did catering. Catering about second don't to be similar, to necessarily then the to we meaningful significant half is Olive impact basis we the with thing but quarter And Xs We mid- expecting. XX in that's gas, fairly

Lauren Bank. Deutsche question from next Silberman from coming is today Our

quarter. the on Congrats

the So really and in just on you're Thanksgiving the at strong seeing Can Garden the talk about performance, any color through December you particularly Oliver what cadence And shift. quarter? LongHorn.

some created So noise. that's

to seeing terms of understand trying in underlying just trends? So you're what

Lauren. Yes,

points. at during was the when pretty traffic Never holiday for earlier, basis strong as Pasta within the us, Bowl. the we for September about actually look September the in think the underlying Garden, hurricane quarter, talked So weather because October adjusted was had I about Ending quarter impact was Olive hurricane when the quarter, points. The we at XX in about we base XX we But by impact, look storms basis trends and impact trends driven

traffic account brands. all shift So we noise that see weather when the of X you quarters the and is we for trends of and what holidays promotion, basic our then the underlying saw across versus the of improved what prior

actually, look brand significant quarter, impact about then change differently. each we we're that quarter, as And think but but what the third the into X be into we as versus the holidays holiday a only has year. weeks continued in last schedule

schedule quarter. pre-COVID look at holiday XXXX exact versus best way same this year when trends for same had the schedule. as the holiday this, really the So we this was the to

time we're look if we when at what versus retention about that that you very we look good we lens on look So and -- seeing. frame, at pre-COVID, traffic through at feel

that incorporated So guidance. our is all into

there in about be point. in you'll Clarifying, and some thinking stuff the you'll these items, the promoting then out that wanted then a classic follow up a Chicken January. any just of how take promoting point you're price about third at be specific the to And price X industry? color And LTOs Great. compelling I given on promos what's the Marcellus, Gorgonzola, and

to going to For will about price continue filters are say that going not talk what our though. stick to the to competitive is, Lauren. point we're we I reasons,

not discount, compelling So but point. deep a this it's price a is

you'll soon. pretty that So see

I is then. I right X, January around it's think it think, when starts

won't it be long. So

those It's all X items? Great. of menu

me? Excuse .

It X at promoted point? menu a that will be price all are items

price No. a There X point. be will at

menu. the X other The are already on

offer. -- the know would is time people point So know but price the X that that's limited what

on menu. other The stay will X the

Jon Your coming is next Tower Citi. from from question

into the update particularly of across the Olive of like service bit there you there's of in think just of us being on for room you to give previous expedite if you sort progress brands, the feel of to a perhaps upgrading could calls, the are leaving area still talked infrastructure an curious, be I Garden as about where system. any help that Rick, speed point terms you earlier of and an the had know the across I'm idea will you where technology you speed the unlock in that around the of on And some spoke sales? improvement.

question. for Thanks the Jon. Yes,

speed the on said for by vary opportunities I As call, brand. the last

sense each makes the approaching it different for most a So them. is way that brand

is in industry improvement to have That of thing Every industry was our a improvement also in in because get said brands. actually improvement this seeing seen the gradual dining brands said, one of be the are We full service long-term we and a the speed. to this very going in slower. casual the speed all happened that long-term

So it's while a to faster. going get to take

You convince people our have to restaurants, in not guess.

that our We have people. is team we right to this the thing. convince And XXX,XXX it's -- have

because, while. So And Cheddar but same it Garden getting really on you at wild and I'll thing, necessarily the will taken take price they're Cheddar's Olive about. again, food example because is without speed great a push is what give this has a an a doing big

seen key they've faster And their restaurants. I'm they to into areas. service to few get going not a execution areas their to on those already recently focus And what in updated steps are.

the we been really and that do that right are I all on that's out something that, sale, in technology, really you push little servers on the In things of the their on today going at I be table, have think are other them the to mentioned, having focusing brands always which but too. table. and piloting appetizer a a bit have the actually Many is said, as helping. faster. our Ziosk ringing is point of available, which helps rolling brands As next-generation of about When regards to

there's So a is the to doing going be long-term really a of thing, again, pleased we're get speed. we're things lot to But this that of early and progress.

curious connected bit know If into that. the I'm if this. there's versus building speaking channel, Cheddar's of brand you'd traditional some so where you And just idea weaved on curious linear touched TV? connected a maybe into that's differential Great. And Can us drive linear? marketing awareness. I give of it. TV. utilizing specifically, that mentioned spend you And it of the gauge TV different traditional I'm to a comes in just maybe connected the about just little then savings appreciate cost the broadly piece TV you terms but versus the earlier, side, I any can significant between relative

that we knows connected a a been We marketing a digital LongHorn. their LongHorn pretty Jon, portfolio been been then at have believe things Cheddar's. brands that from Olive We've expand. we results benefit have We've different test it And we it is can lot it their testing testing at testing a to of lot and at like smaller great Olive our at been Garden. for We've And about seeing in digital test. test TV that. it's we is our several it internal Cheddar's and our and and testing they've expanded got years. team brands big Garden others. channel move the of can to good and Cheddar's continue

in As effective. cost, it's the more

or we We or more codes groups. target age good target a can it's our little nonusers bit get targeting groups consumer costs it's whether So because it pretty the users we the brand, much specific we of Connected effective some to, or more, to can -- targeted. And TV. if for geo can have

in if effectiveness that account, where different you good it's is. when I feel cost. that about so . out even pretty the into we But And think -- take probably not

is Next from coming from question Dennis UBS. Geiger

anything embedded of you there, any commenting I now, know I kind I the the for feel faster think, color for year any of guide that And we relative expectation little -- there Encouraging like just the Uber is Direct. curious, Direct a the if is Thanks as assuming bit full encouraging you're on was incremental. rollout, not not on I'm had contribution, Rick, thought I said that previously. no and Uber said marketing. Great. previously also you're there than to

the or not just embedded in for year this from yet? So anything is guide Uber

Dennis, than A a pointing thanks you thought. why is. from things. the bit is tell that worked maybe we for the quicker couple the beginning. flawlessly And I'll technology rollout One out little of

and we our systems. IT pilots, the changes about here a the Uber we to issues. technology tweaks their great If work make sale had wanted to had you some into their did some or of team sometimes work. systems think a few way team proprietary Uber there, has actually, the integrating job Yes, little point to but it to And

about to sure all make that is second, a that the we we're the worked things most think is little important be think what because buy-in. well. that -- So wanted successful bit we you we going things reason And if one faster operator helps of

And as can. curbside this operators the pickup. that locations we pretty It's unanimous every in we Garden all embraced at much in pilot as in are almost essentially fully and this should exactly almost put fast are like Olive

this have year. and to regards guidance the big key. for and real don't In real of guidance, a them point any incremental rollout sales in it's the the our because not that into sale, we for it's so change built And launch fiscal our into for our integrated was

encouraging. great, That's

could it I sneak in. if wondered Just

to in all we just forward Is a going than Garden about as shift last how as As it the think longer that? from we and forward menu there see think there do the menu more specifically ahead, years? going Will relates we term? innovation about Olive we few innovation look

Yes, for can where there innovation that right continue the back there be on Chicken our to limited price bring a gaps entire get a to and offer over menu, There have more Dennis, all and there come at what some items the and that menu, and great as are needs others you to some as across still are with look are just menu really time. compelling even done value on little think for the our of the now menu see to we've we have but that years that in we've bit to worked consumer their them Zola of Marsala. innovation more you points -- State we in, Olive X . Stuff Garden Gorgon value and will that see we've wanted more improve simplifying that about to guests. and we

coming from is question from Next Francfort Guggenheim. Gregory

feels major this have step I a guess, of little question. retailers being recently we've for be Thanks the step of of role maybe restaurants the like feel function what field, Rick, relevant AI major moats processing function, Darden? data, bit it's sort at like left competitive And Do seen a you in One from but data, is to helps playing in able this a to things, Darden? this might lot outside out customer a create? you guess, do of internally a think I that. operational seeing that's you Are of

Raj. is this Greg,

of a moved years actually few in tokenization on bit -- was a little the leveraging on ago for We ago. data forefront terms years we've put of the been Lot the in us. So lake place data. several to the

X, strategy. ago. years strategy embarked this had on X data a have work We We

technologies with really we we've analytics helped the stay us to have so been Snowflake whether built and really data analytics. of terms been collect leverage data. all and And have that that technology, or that organize leverage scientists ahead then of team foundation of works. That's And already strong are competitors cloud-based a it's to we able new that that. other advanced teams our And actually in in the of a

but us team on pilots, get be gradual feel we point the step it on the built. a that a better. we how but it's continue our Obviously, advent to capabilities we are of lot group this of with been expected improvement, that have necessarily change, people we that's some don't and not focused are GenAI business. on I a a to to out journey, for and our at can but about we good share, within are leverage figuring we there's There focused best

is Gargiulo from Danilo from question Bernstein. Next coming

might the the at up. driving restaurant this to the implemented market, labor sires the of labor look be immigration policies half if back we were maybe shrinking be When the may pool and especially into be maybe 'XX XXXX, for tire

a absorb think years. you've you actions and that over going Or on that? with impact But you proposition continuing considering any than that employment the Do you understandably, some demonstrated to to to to that consumers? be assuming Are better might have So affecting. consumers that peers, pass pricing more of also on increases cost forward? much can are you going prudent be planning

little back it's we're to think actual on they're We've I overall immigration I to -- kept our our lower through Danilo, in a a at administration environment more or that administration new still go been a little going the to comment what level and an early normal do. too before. operate and will to more able that had and bit strategy.

others. inflation food getting can overall to it's we limited the to below than than our restaurants. account, strategy to our become keeping into to less compete other below right stick we points inflation other of to X,XXX our scale find if we But years, we take and basis the and ways includes costs Darden pricing expect I CPI is. is into our using to Without have what ways which advantages would what to And points also we'd so less at service of our look labor against. our inflation, and take efficient that you all last XXX find price some about more X Our out basis think almost at who strategy to now, over see impact do,

X pricing about years last total it's Darden. for of XX% think I So over the

much and that's less continue than that. on So else we'll everybody to . focus

on only you the your Great, Rick. political as And consumer not also given sentiment, comments, shift earlier. building but environment, in the mentioned

because the about? of you're And some what item more you is light watching about? most have in XXXX, one closely that, looking excited is item the that concerns that maybe what one So into you're

I'm different about Cheddar's is restaurants. to to about made make. their excited also our the has I'm at continue doing and our last LongHorn guests better to Garden performance the in about the our that excited talk I brands. years about all brand investments excited team X brands. and over the Yard our I'm House about about the drive consumer. excited feel of and way what Olive in to a I'm

-- we're about excited our second stuff. the things that been in I'm I'm have excited about. I'm -- I what talk think we about the those we needle, But there's we internal quarter. we the handle. want will move we to on happens doing. are excited to ways the And I externally, about have that and long focus So and term, clear showed Whatever

question Baird. Tarantino is coming Next today from from David

the question Just on a CapEx quick guidance.

a bit whether versus step-up? on elaborate just had I up suspect you you from And for of some that's and about Could So the is it growing think on then run to stepped think quite a last that you of good Chuy's. kind us the related range why midpoint forward? the going to of big that time, rate

David.

pipeline a in to the expect of some coming also X building part laying CapEx. pipeline. which other open for of bought things. land, it mean, some we we next And But part some mentioned, in a we is So a there's of couple Obviously, with but it. Chuy's said, as increases Chuy's -- I the restaurants, bought we that situations, the is us year. also

end said spend obviously, would we've -- have that on now, like pathway we're share higher X% along to get growth, unit been right our that. get we to those more to the in of of next the we to framework projects to March. year, of But trying We'll now. kind So all for we've

units, To a materially. probably your The question in of maintenance it maintenance, up $XXX around wouldn't around have all But units that year. new move up is function go I if a I million a this too. would would say new IT we run to rate, of step-up versus CapEx, expect CapEx, is that right?

so March. in share more we'll And

question from Krotopale from next today JPMorgan. is coming Our Rahul

up customer, vantage given pipeline, your just point from industry or would say, pay any the industry, taxes preliminary cetera. it Any you relates for credits casual to, for what years product et development broader and M&A a around also -- Any as permitting, mean on a versus or And previous dining team. deregulation a particularly your Rick comments potential actuating space I have specific that tip follow-up. thoughts guide policies on foresee?

reduces Yes. it permitting, could in a We'll good. be But on up regulate to that time coming line. good anything to I'm down some . is on the us, be anything that would for us will have is, say of restaurant it when way going anything comment the kind to I open whatever happens. it that can comment the open marketplace help not

Got it. within are brand your the casual having follow-up. thoughts And over What time. on a fast portfolio a quick

more younger curious, comments overall I'm eventually were But be sooner helpful. who part Your very a and towards into shifts the in the as model customers interacting the not with gravitate seem to why your demography this will this just tap industry brands? see on M&A Cheddar's address to given we of

get we've more that couple our I'll into fast peak you'd a a scale the we We'll about you One a we're believe we've company full-service not of time long speed casual higher years, casual things where a into in they visits we time advantage. of that. than different being things. the we from move very doing soon. about model. in consumer, dining. is And a casual -- the over-- we any our that that is we And will we know. we in consumers. younger if younger move Rahul, full are The conversations have anticipate other excel is we to actually initiatives we like, on continue the had have a There's is That said say past. restaurant The help. service. can consumers thing model that what something That fast And their detail as consumers mentioned would consumer. older But that earning is have said, percentage younger from into

Casual back to milenials a you the had visits are of percentage now, ago, certain come more. dining, casual XX you dining If those go same years and visiting people

is So of it's it that and lifestyle they versus casual need casual a fast state like dining. than more really versus

question coming Truist from is Jake from next Bartlett Securities. Your

could at inflation per been of operating quarter. on week, significant you're talk improved I But other have is driving to bit so that helpful, [indiscernible] a that of point some was anything year start much? I'm I that a shouldn't Mine expect lap at narrower we you gained your and else been trailing more a it's opportunities labor to follow-up. this cost labor efficiencies maybe last kind I'm for to and about have retention lead you going little wondering, efficiencies? your some And then then look thinking quoting. but is lag you've difference labor know there so we And if a wage efficiencies. you

Jake.

yes, So improvement than you always pointed kept find grown yes, less really labor has talked turnover. that's by driven about how system, the significant labor efficiencies. we're growth, trying When as wage we've out, specifically, look we has and in at a to a --

look several earlier And at last improving. is because at I labor Rick you little more, what's the Thanksgiving some the -- been is And second big a brands. best about mention That's the has our is specific to the year, second contributors. If versus casual you open years, X.X quarter, -- turnover last mention leverage for the part, levels happened we've of closed. will our over dining shifting brands day the bit heard been of of you the historic some one right, actually

to through always great to has It the it -- and experience. So the of as there's come said, come improving a little a continuous service, processes, has that process in labor. giving we're That bit we of streamlining the of leveraging but fixed then eliminating helps. But steps improvement. at improving, guests

continue we'll so that. And do to

quarter. as in that point? a is then It the in couple I maybe XX the basis was points here basis a sales. you I follow-up XX increase is about And should in the selling as think higher 'XX basis to points And have about Great. XX was think percentage expect wondering, points of that thought, commentary I'm second past on an XX of being the sales 'XX. a at higher we versus percentage this we of

we was would possible. still ago. of also mean a it's Thanksgiving year would that we call. than were been shifted again, have out air, also had shifting I we we the extra mentioned Jake, Yes. then of weeks week things function One nonearning And on a more an on

grow those to in expect so we be it, sales And profit we and are the quarter, couple But if to deploy find of marketing things can we XX that role. we that, this call that we'll Again, grow dollars still higher that. a do points did and full at year, we XX when look like basis

We to . session. the Phil back to reached like I'd further comments. over closing our the end any turn for of or floor question-and-answer

you call. Thursday, today's our a to concludes release want quarter Thank That remind with to on conference market before plan call for March the you results to I we XX, that third on opens participating follow. call.

you. That today's Thank conclude does webcast. teleconference and

a disconnect may wonderful and You for day. your participation at line today. time, have this thank We you your